The IUP Journal of Bank Management
The Economic Impact of SHG-BLP on the Empowerment of Rural Women in India

Article Details
Pub. Date : Aug, 2020
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJIT30820
Author Name :Vanishri R Hundekar and M M Munshi
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 21



The present study seeks to examine the application of Self-Help Group (SHG)-bank linkage schemes and their impact on the empowerment of women in the study area and also attempts to evaluate if SHGs can be change agents in influencing women empowerment. The data has been collected from a total of 120 selected members and 25 SHGs which were organized under the Stree Shakti Scheme of Belagavi district of Karnataka. Both structural and behavioral approaches have been used for the study through a questionnaire. The data was analyzed through different statistical tests like reliability test, multiple regression analysis and paired t-test. The study reveals that microfinance-related loan and its productive utilization cause a significant difference in women empowerment level. As per the study, the main reason behind the progress of SHG is credit linkage with poor and vulnerable people and its ability to help members of SHG build financial status, enable members to become self-reliant, build confidence among poor and rural women and eventually help them earn a better livelihood. Besides the above findings, the study also revealed some of the constraints faced by rural women in the journey of their empowerment. SHG program could well be the catalyst to achieve inclusive growth across the country.


Indian economy is recognized as one of the fastest-growing economies in the world. Indian economic development lies in the prosperity of its villages, as the hinterlands of India consist of about 650,000 villages and 68.84% of its population lives there (Census, 2011). However, a significant proportion of its villages does not have a banking outlet to boast of, leaving swathes of the rural populace in financial exclusion. Microfinance initiative has been instrumental in achieving inclusive growth for many economies around the world, including India per se. Financial inclusion is a novel exemplary model for economic growth that assumes an essential role in mitigating the poverty level. The marginalized sections of the society are commonly not covered under the formal financial framework owing to the high cost associated with small-scale financial

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